January 21, 2016 – CBRE Group Inc. announced the sale of a creative office building in Hollywood, California, to Langdon Street Capital for approximately $674 a square foot, one of the highest prices for an office property in the area, demonstrating Hollywood’s appeal to investors and strong tenant demand.
The property, on 5707 Melrose Ave. adjacent to the corner of Melrose and Larchmont, is a 10,390 square foot office, featuring a bow truss, exposed red brick, concrete floors, and skylights. The building has been upgraded for post-production and creative office use. The property was delivered vacant at the close of escrow, and the purchaser plans to further improve existing enhancements to attract a top-tier media, entertainment or technology tenant.
Langdon bought the single-story building for $7 million in an all cash transaction from DCP Management, LLC. The seller was represented by CBRE’s Rob Waller, Patrick Amos and Andrew Riley. CBRE’s Matthew Perlmutter represented the buyer.
The building caters to entertainment-related tenants with one side featuring post-production space, complete with several editing bays of various sizes, high ceilings, executive office space and a full kitchen. The property sits amidst the Hollywood multi-tenant office market, which is comprised of more than 3.1 million square feet spread throughout 36 office buildings.
"We're very excited to add this asset to our long-term portfolio and deliver a high-end creative office space that makes a statement,” said Adam Daneshgar, Principal at Langdon. “We believe the property is well positioned to thrive amongst the influx of technology and media companies entering the Hollywood Media submarket."
Hollywood is in the midst of a major revitalization, which includes more than $4 billion in public and private developments, including entertainment and tourist venues, the extension of the transportation infrastructure, a large concentration of new residential, commercial and office developments, and the redevelopment of numerous restaurants, hotels and bars. This activity and investor interest has transformed the area into a vibrant “live, work, play” environment, which has led to large recent lease transactions from Netflix and Viacom who relocated to Hollywood from Beverly Hills and Santa Monica respectively.
"We think the building is a great investment; it certainly was for us," said David Carr, Managing Member at seller DCP.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
